Advertisement
Canada markets closed

  • S&P/TSX

    21,969.24
    +83.86 (+0.38%)
     

  • S&P 500

    5,099.96
    +51.54 (+1.02%)
     

  • DOW

    38,239.66
    +153.86 (+0.40%)
     

  • CAD/USD

    0.7316
    -0.0007 (-0.09%)
     

  • CRUDE OIL

    83.66
    +0.09 (+0.11%)
     

  • Bitcoin CAD

    85,969.66
    -2,080.96 (-2.36%)
     

  • CMC Crypto 200

    1,305.91
    -90.63 (-6.49%)
     

  • GOLD FUTURES

    2,349.60
    +7.10 (+0.30%)
     

  • RUSSELL 2000

    2,002.00
    +20.88 (+1.05%)
     

  • 10-Yr Bond

    4.6690
    -0.0370 (-0.79%)
     

  • NASDAQ

    15,927.90
    +316.14 (+2.03%)
     

  • VOLATILITY

    15.03
    -0.34 (-2.21%)
     

  • FTSE

    8,139.83
    +60.97 (+0.75%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • CAD/EUR

    0.6838
    +0.0017 (+0.25%)
     

UPDATE 1-Sterling set for second week of gains versus dollar

Ritvik Carvalho
·2 min read

* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv (Updates prices, adds graphic)

By Ritvik Carvalho

LONDON, May 14 (Reuters) - Sterling was on track for a second week of gains against the dollar on Friday, consolidating above $1.40 as the U.S. currency took a breather from a recent rally.

The pound is up 1.8% against the dollar since the start of May and is the second best performing G10 currency against the dollar year-to-date, aided by a more hawkish Bank of England, which has begun tapering asset purchases, and by Britain's vaccination drive that has enabled a gradual reopening of the economy.

ADVERTISEMENT

Britain will adapt its vaccine rollout to protect people more quickly in areas where a coronavirus variant first detected in India has emerged, the vaccine minister said on Friday.

The UK has delivered one of the fastest inoculation campaigns in the world, giving a first shot to almost 70% of the adult population and a second to 36%, helping to reduce infection rates and deaths.

By 1556 GMT on Friday, sterling was up 0.3% against the dollar at $1.4095, off a nearly three-month high of $1.4167 hit earlier this week.

Against the euro, sterling was 0.2% lower at 86.13 pence.

"GBP is largely holding onto recent gains and progress on the Indian variant of the virus is yet to have any impact," said ING in a note to clients. "Yet this needs to be watched."

"EUR/GBP did reject levels down at 0.8560 earlier this week quite strongly and we tend to favour more consolidation for the time being."

Analysts also say a combination of a stronger UK economic rebound than expected and the belief that any Scottish independence vote is a long way off makes the pound relatively attractive.

Britain's economy grew by a stronger-than-expected 2.1% in March from February, gathering speed for what is expected to be a sharp bounce-back this year after its deep coronavirus slump of 2020.

(Reporting by Ritvik Carvalho. Editing by Jane Merriman and Nick Macfie)